3.0 Transmission
Studies

3.1 Introduction

The Public Utilities Commission requires that the utilities include in each Biennial Report a “list of studies that have been completed, are in progress, or are planned that are relevant to each of the inadequacies identified” in the Report. Minnesota Rules part 7848.1300, item F. In the 2005 Biennial Report, the utilities not only identified completed, ongoing, and planned studies but also described in general terms the transmission planning process. In the 2007 Report, the utilities again described the relevant studies and in addition, pursuant to legislative directive, described planning processes and studies related to compliance with Renewable Energy Standards.

In this 2009 Biennial Report, the utilities identify a number of studies that have been completed that either address expansion of the transmission network to generation expansion, in particular renewables, or address local inadequacy issues (noted with a Tracking Number). Section 3.3 describes ongoing regional studies that focus on expansion of the bulk electric system to address broad regional reliability issues and support expansion of renewables in the upper Midwest. Section 3.4 focuses on ongoing studies that are attempting to resolve local inadequacy issues.

3.2 Completed
Studies

The following studies have been completed
and where specific transmission projects have been identified,
a Tracking Number is provided. The Tracking Number identifies
the year the project was first considered for inclusion
in a Biennial Report and the zone where the project is
located.

Study
Title

Completed

Utility
Lead

Description

Dispersed
Renewable Energy Study

2009

MTO

State legislation
in 2007 required a statewide study of dispersed renewable
generation potential to identify locations in the transmission
grid where a total of 1200 MW of relatively-small renewable
energy projects could be operated with little or no
change to the existing infrastructure. For the purposes
of the study, dispersed renewable energy projects are
wind, solar and biomass projects that will generate
between 10 and 40 MW of power. The Phase I study goal
was to identify locations in the transmission grid
where a total of 600 MW of relatively-small sized renewable
energy projects could be operated with little or no
changes required to the existing infrastructure. The
potential locations studied were based on public input,
regional availability of renewable resources, current
dispersed generation in the MISO queue, and access
to existing transmission. Phase II of the study began
in October of 2008. The goal of Phase II is to identify
locations for an additional 600 MW of dispersed renewable
energy. Study details can be found on the PUC website:
http://www.puc.state.mn.us/PUC/electricity/documents/reportsstudies/index.html

Renewable
Energy Standard (RES) Transmission Study

2009

MTO

The
objective of the Minnesota RES Update Study was to
investigate and recommend future transmission alternatives
to increase generation beyond that enabled by the
proposed Southwest Twin Cites – Granite Falls
upgrade. The study identified future limiting facilities
on the transmission system with emphasis on several
generation development zones. The study also addressed
the operational impacts of increasing wind generation
in the region on the transmission system. Study details
can be found on the Minnelectrans website: www.minnelectrans.com

Southwest
Twin Cities – Granite

2009

MTO

The
objective of the Southwest Twin Cities – Granite
Falls

Falls Transmission
Upgrade Study (Corridor Study)

Transmission
Upgrade Study was to confirm that upgrading the existing
230 kV corridor removes a key limiter to increasing
generation delivery between western and southwestern
Minnesota (as well as points further west) and the
load centers in Minnesota. The study clarified the
optimal transmission endpoint configuration for the
recommended project. The study also determined that
the upgrade created an additional 2000 MW of outlet
capability. Study details can be found on the Minnelectran
website: www.minnelectrans.com

Capacity
Validation Study

2009

MTO

The study
looked at several specific transmission projects, taken
individually and in combination, to determine how much
additional generation can be added to the system and
where as a result of the transmission additions. The
study results provide a range of additional generation
that can be added by various combinations of transmission
projects along with estimated locations of new generation.
The study sought to verify and validate the transfer
capabilities which have been estimated by other studies.
Study details can be found on the Minnelectran website:
www.minnelectrans.com

Green Power
Express Study

2009

ITC

The
proposed Green Power Express is a 3000 mile network
of 765 kV transmission lines stretching from North
and South Dakota, across Minnesota and Iowa, into
Wisconsin, Illinois and Indiana. Four 765 kV substations
and approximately 800 miles of the proposed project’s
transmission lines would be in Minnesota. When complete,
the Green Power Express would facilitate movement
of approximately 12,000 MW of power from wind-rich
areas to major load centers in the Midwest ISO and
PJM regions. Additional detail can be found on the
ITC website: http://www.itctransco.com/projects/thegreenpowerexpress.html

Facility
Study Report for Midwest ISO Project # F-075 (A411)

2009

Otter
Tail Power

2009-NW-N5

Results
of Interconnection Facilities
Study Following Attachment
X Process for MISO F-075
(Maple River Substation and
Sheyenne Substation Line Upgrade to 336.5 MVA)

2009

Xcel
Energy

2009-NW-N6

Great River
Energy Long Range Plan

2008

GRE

The study
is a guide for future needs in the GRE service territory
that assures its customers a reliable, cost-effective,
and energy efficient power source to the year 2031.
Although different plans may eventually be developed,
this guide gives a good foundation for formulating
ideas for future plans in specific areas.

North Mankato

2008

Xcel Energy
GRE

2007-SE-N3

Mankato
Area Study

2007

Xcel Energy
GRE

2003-SE-N3

Outer Metro
115 kV

2007

Xcel Energy

2007-TC-N1

Regional
Incremental Generation Outlet Study (RIGO)

2007

Xcel Energy

The RIGO
Study was described in the 2007 RES Report. Currently,
the Certificate of Need is moving forward on the 161
kV line from Pleasant Valley-Byron. It is expected
to be filed by the end of 2009 or early in 2010. The
other upgrades recommended in the RIGO Study will be
pursued as generation interconnections necessitate
their completion.

Bemidji,
Minnesota Area Electric Transmission Study: Evaluation
of Near-Term Transmission Needs in the Bemidji/Wilton
Area

2007

CapX
2020

The
objective of this study was to identify what transmission
reinforcements were needed in the Bemidji / Wilton
load center prior to the in-service date of the Bemidji – Grand
Rapids 230 kV Line. As a result, additional capacitors
are being added at Cass Lake, Under Voltage Load Shedding
(UVLS) has been added in the Bemidji / Wilton load
center, and the 115/69 kV transformer at Cass Lake
has been replaced (all of these short-term upgrades
are under described in more detail under tracking number
2007-NW-N2).

Adams-Rochester
161 kV Study

2008

Dairyland

2007-SE-N1

South Minneapolis
Distribution Study

2008

Xcel Energy

2007-TC-N3

Dotson Area
Load Serving Study

2007

ITC Midwest

Upgrades
identified (2007-SW-N1, 2007-SW-N2, 2007-SW-N3) in
the study
were based on the interconnection of a MISO wind generation
project near Storden and based on future load serving
needs in the southwest zone. The wind generation Developer
has recently unsuspended the interconnection project
driving 161 kV upgrades in southwest Minnesota, but
while the project was in suspension, load serving needs
changed, as proposed plans for area ethanol plants
were either delayed or cancelled. The need for upgrades
to accommodate ethanol plant loads has diminished,
and a restudy is required.

The
Fargo – Alexandria – Monticello
345 kV line (2005-CX-1) was one of the transmission
projects identified in this study. The PUC Docket number
is CN-06-1115. The Boswell – Wilton 230 kV Line
(Bemidji – Grand Rapids) (2005-NW-N2) is another
transmission project identified in this study. The
PUC Docket number is CN-07-1222.

West Central
Community based Energy Development (CBED) Study

2007

Several
utilities

The focus
of the study was to determine the impact dispersed
generation might have on the transmission network.
The high level study focused on identifying generation
locations in the west-central planning zone.

Analysis
of Transmission Alternatives to the Boswell – Wilton
230 kV Line Addition

2006

CapX
2020

This
study evaluated different transmission alternatives
to the Bemidji – Grand Rapids 230 kV Line. After evaluation
of 3 different alternatives, the Bemidji – Grand
Rapids 230 kV Line was determined to be the best alternative
to meet the long-term needs of the transmission system
(more information can be found under 2005-NW-N2 and
within PUC Docket number CN-07-1222).

The study
identified three 115 kV lines and a new 345/115 kV
transformer and capacitor additions at three substations.
The PUC docket number is CN-06-1542

Southwest
Minnesota-Twin Cities 345 EHV Development Study

2005

CapX 2020

The study
identified the Brookings - Hampton Corners 345 kV project
(2005-CX-2) as a transmission project that would create
additional generation
outlet on the Buffalo Ridge. The PUC docket number
is CN06-1115

Southwest
Minnesota Exploratory Study

2005

MISO

This study
was discussed in the MTEP-06 Report. This study was
also described in the 2005 Biennial Report.

Northwest
Exploratory Study.

2004

MISO

This study
was discussed in the MTEP-05 Report. This study was
also described in the 2007 Biennial Report.

3.3 Regional
Studies

While every study that is undertaken adds
to the knowledge of the transmission engineers and helps
to determine what transmission will be required to address
long-term reliability and to transport renewable energy
from various parts of the state to the customers, some
studies are intentionally designed to take a broader look
at overall transmission needs. Regional studies analyze
the limitation of the regional transmission system and
develop transmission alternatives that support multiple
generation interconnect requests, regional load growth,
and the elimination of transmission constraints that adversely
affect utilities’ ability to deliver energy to the
market in a cost effective manner. Many of these studies
are especially important for focusing on transmission needs
for complying with upcoming Renewable Energy Standards.

3.3.1 Midwest
ISO Transmission Expansion Plans

The Midwest ISO engages in annual regional
transmission planning and documents the results of its
planning activities in the MISO Transmission Expansion
Plan (MTEP). The MTEP process coordinates the transmission
plans of individual MISO member utilities to develop a
coordinated regional transmission plan. The Minnesota Transmission
Owners have reported on the latest MTEP Plans in each of
the Biennial Reports.

MTEP-08 Report. The
MTEP-08 Report was approved by the Midwest ISO Board of
Directors on December 4, 2008. The subtitle of the report
is “Growing the Grid Across the Heartland.” The
MTEP-08 Report identifies those projects required to maintain
reliability for the ten year period through the year 2018,
as well as a preliminary evaluation of projects that may
be required for economic benefit up to twenty years in
the future. There are 332 new projects recommended for
approval by MISO in the 2008 plan, totaling $2.4 billion,
bringing the total of currently approved projects in MISO
to 475 projects, totaling $4.2 billion. Other planning
projects are also listed in the report but are still in
development or under study for possible inclusion in future
approved plans.

MTEP-09 report. The
2009 Midwest ISO Transmission Expansion Plan is still being
finalized. The following language from Section 1.2 of the
Executive Summary of the draft MTEP-09 Report explains
the purpose of this planning activity.

The MTEP Report is produced on an annual
basis to provide interested parties with an overview
of the Midwest ISO’s planning processes, an update
on the transmission planning studies underway, and an
understanding of the analyses used in the execution of
those processes. The report is also the vehicle to communicate
the projects that, as a result of those analyses, are
recommended to the Midwest ISO Board of Directors for
approval and subsequent implementation.

MTEP 09, the 6th edition of this publication,
is the culmination of eighteen-plus months of collaboration
between the Midwest ISO’s planning staff and its
many stakeholders. For each report cycle, efforts are
focused on identifying issues and opportunities related
to the strengthening of the transmission grid, developing
alternatives to be considered, and evaluating those options
to determine if there is an effective solution among
them. The objective is to identify projects that:

Ensure reliability of the transmission
system

Provide economic benefit, such as through
allowing increased efficiency in market operations
(i.e. reducing cost of energy production and/or the
price paid by load)

Enable public policy objectives, such
as the integration of renewables, to be achieved

Address other issues or goals identified
through the stakeholder input process

The MTEP-09 Report should be finalized
for approval by the Midwest ISO Board before the end of
2009.

MTEP-10 and Beyond. In
the MTEP-09 Executive Summary, the following quote describes
future planning activities by MISO.

A focus of MTEP 10 will be on the continued
implementation of the value-based planning process that
the Midwest ISO has been evolving to over the last couple
of years. The Midwest ISO will be refining the robustness
testing methodology with stakeholders and will seek to
further the amalgamation of its planning functions. As
these functions - short term reliability, long-term value
based and targeted studies - become fully integrated,
longer-term solutions that provide greater benefits will
become alternative solutions to address issues that are
today solved through a series of shorter-term, and many
times less valuable, mitigation steps. That is not to
say, however, that the discrete analyses will disappear.
Studies over each of the timeframes are still required
to meet the planning needs of the region in the most
expedient and efficient standpoint. In fact, with continued
experience the Midwest ISO has recognized the value of
having the combination of plans. As the Midwest ISO seeks
to implement nearer term reliability upgrades through
the queue and the NERC reliability analyses, results
from targeted studies provide insight into potentially
more efficient alternative solutions based on the larger-scale
transmission developed therein. Similarly, targeted studies
such as the Regional Generation Outlet Study are informed
by the long-term transmission roadmaps created through
efforts such as the MTEP long-term value-based planning
and the Joint Coordinated System Plan. By planning in
the reverse order from which transmission is actually
built, the nearer term transmission solutions can be
developed in such a way to support future goals through
more efficient plan development, including such considerations
as preserving future right of way requirements.

MISO continues to process generation interconnection
requests and transmission service requests. These studies
will likely have an impact on the need for transmission
in Minnesota. It is difficult to predict which projects,
if any, will actually move forward, as the decision to
move forward on a transmission project that is related
to generation interconnection and transmission service
is up to the generation developer. There is one particularly
large transmission service request that involves the possible
construction of a 500 kV transmission line in Minnesota.
The transmission service request is asking to increase
the ability to transfer power from Manitoba into the United
States by 1100 MW. Two options have initially been identified,
one involves a 500 kV line from Winnipeg to the Twin Cities
via Northeast Minnesota, and the second option involves
a 500 kV line between Winnipeg to the Twin Cities via the
Red River Valley (Fargo). MISO continues to study these
options as well as others.

3.3.3 Study
of a LaCrosse to Madison 345 kV Transmission Line

ATC is continuing its efforts to study
the potential benefits of a 345 kV transmission line that
would extend from LaCrosse to the Madison area in Wisconsin.
The line would be approximately 150 miles long, possibly
include substation enhancements, and cost an estimated
$545 million to construct. ATC has submitted a North LaCrosse – Cardinal
(located near Madison) 345 kV line with a possible in-service
date of 2017 to Appendix C of the Midwest ISO Midwest Transmission
Expansion Plan. The line is identified as project #2845
in the MTEP projects database.

ATC views that a LaCrosse to Madison 345
kV line would be driven by a combination of benefits – reliability,
economic, and integration of renewable energy – and
these benefits would potentially be provided to ATC’s
service territory and the region, including Minnesota.
For instance, the combined Southwest Twin Cities – Granite
Falls Transmission Upgrade Study and Minnesota RES Update
Study indicated that when wind generation increases beyond
the level required for Minnesota’s 2016 RES milestone,
a new 345 kV line that extends from LaCrosse to the Madison
area would help avoid system stability issues in the Twin
Cities. The Southwest Twin Cities – Granite Falls
Transmission Upgrade Study and Minnesota RES Update Study
also found that combining the Southwest Twin Cities – Granite
Falls upgrade with a 345 kV line from LaCrosse to Madison
would create a total of 3,600 MW of new generation delivery
capability, 1,600 MW of which is attributed to the LaCrosse
to Madison line.

In 2008, ATC began studying the potential
economic benefits of a transmission line that would extend
from LaCrosse to Madison and those efforts are continuing.
Through ATC’s strategic flexibility approach, the
company is analyzing various configurations of a 345 kV
line from LaCrosse to Madison under several plausible futures.
Results are expected in the first quarter of 2010. More
information about ATC’s economic planning can be
found on ATC’s 10-Year Assessment Website: www.atc10yearplan.com.

There also is an effort underway that will
analyze the reliability benefits of a 345 kV transmission
line from LaCrosse to the Madison area in Wisconsin. The
Western Wisconsin Study is investigating the long-term
reliability issues in the western Wisconsin area and transmission
solutions to address those needs. The study is led by ATC
and is a collaborative effort that includes Xcel Energy,
Dairyland Power Cooperative, ITC Midwest, Great River Energy,
Southern Minnesota Municipal Power Agency and the Midwest
ISO. It is anticipated that the Western Wisconsin Study
will be completed in the first quarter of 2010.

A LaCrosse to Madison 345 kV line also
is being analyzed as part of phase I of the Midwest ISO’s
Regional Generation Study (RGOS I) as a possible transmission
facility needed to satisfy renewable portfolio standards
and goals in Upper Midwest states. It is anticipated that
a LaCrosse to Madison 345 kV line will be included in the
final 345 kV designs developed in RGOS I, results from
which will be provided to the Upper Midwest Transmission
Development Initiative (UMTDI) for its consideration in
identifying transmission needed to satisfy renewable portfolio
standards in five states.

3.3.4 Regional
Outlet Generation Study (RGOS)

The Midwest ISO, in collaboration with
stakeholders, has undertaken a Regional Generation Outlet
Study in two phases.

The purpose of the RGOS Phase I is to develop
transmission projects that will fulfill the renewable energy
mandates in the four states of Illinois, Iowa, Minnesota
and Wisconsin. The public policy is a major input component
to RGOS and successful plan development. The Upper Midwest
Transmission Development Initiative (UMTDI) is providing
that public policy input. The (UMTDI) is a collaboration
of the Governors and state Regulatory Commissions of Iowa,
Minnesota, North Dakota, South Dakota and Wisconsin. The
UMTDI has a two-fold purpose; encourage interstate transmission
for renewable energy and develop an equitable cost-sharing
methodology for transmission. The UMTDI and stakeholder
helped the Midwest ISO define renewable energy zones within
the five-state region of ND, SD, MN, WI, and IA for 15 & 25
GW wind outlet scenarios. The Midwest ISO along with the
stakeholders performed the studies and 345 and 765 kV transmission
expansion plans were developed for the two generation outlet
scenarios. This RGOS Phase I work is expected to be completed
and an Executive Report published in the December 2009
timeframe.

The objective of the RGOS Phase II study
is to develop a mid-term (5-15 years, approx.) set of regionally
coordinated transmission projects that meet the state renewable
portfolio standard requirements for the states of Missouri,
Illinois, Michigan, Ohio and the Midwest ISO load in Pennsylvania;
as well as any increased requirements in the states studied
in the RGOS Phase I at the least cost to the consumer.
This study will leverage the renewable energy zones and
transmission designs identified and established in RGOS
Phase I. The RGOS Phase II study is intended to be completed
in the January 2010 timeframe.

3.3.5 SMARTransmission
Study

The Strategic Midwest Area Renewable Transmission
Study (the “SMARTransmission Study”) is a comprehensive
study of the transmission infrastructure that may be needed
in the Upper Midwest to support renewable energy development
and to transport that energy to consumers in the Upper
Midwest, the Ohio River Valley, and farther East. The study
is being sponsored by American Transmission Company, Electric
Transmission America, LLC (a joint venture of American
Electric Power & MidAmerican Energy Holdings), Exelon
Corporation, MidAmerican Energy Company, Xcel Energy, and
NorthWestern Energy.

Sponsors of the SMARTransmission Study
have retained Quanta Technology to conduct the analysis,
which will evaluate transmission alternatives 345 kV and
higher and provide recommendations for new transmission
development and how to appropriately stage that development.
Results and recommendations will be folded into regional
planning efforts such as the Midwest ISO Transmission Expansion
Plan and PJM’s Regional Transmission Expansion Plan
for additional study and validation. The study will include
reliability and economic analyses and will focus on an
area that covers the seams of three Regional Transmission
Organizations – Midwest ISO, PJM and Southwest Power
Pool. An open stakeholder process is being conducted to
gather input and will be continued as results are published.

Completion of the SMARTransmission Study
is anticipated in early 2010. More information about the
study is located at: www.smartstudy.biz

3.4 Load
Serving Studies

Load serving studies focus on addressing load serving
needs in a particular area or community. Since many of
the inadequacies in Chapter 6 are load serving situations,
many of these studies relate to specific Tracking Numbers.

Study
Title

Anticipated
Completion

Utility
Lead

Description

Cromwell
- WrenshallMahtowa - Floodwood Area

2010

Minn
Power GRE

See
Northeast Section for further study description (2003-NE-N2)

Duluth
Area 230 kV

2010

Minn
Power

See
Northeast Section for further study description (2007-NE-N1)

Deer
River area Reliability

2010

Minn
Power

See
Northeast Section for further study description (2009-NE-N2)

Enbridge
Transmission Study

2010

Otter
Tail Power Company

2003-NW-N2
2007-NW-N3

Ramsey Transformer Study

2010

Otter
Tail Power Company

2003-NW-N2

Fergus Falls
Area Transmission
Study

2010

Otter
Tail Power Company

2009-NW-N1

3.5 MAPP
Load & Capability Report

The 2009 Mid-Continent Area Power Pool
Load & Capability Report, dated May 1, 2009, can be
found at:

The Introduction to the 2009 Load & Capability
Report provides an overview of what the report is intended
to do:

The MAPP Load and Capability Report is
prepared in response to the requirement set forth in the
MAPP Agreement and the MAPP Generation Reserve Sharing
Pool Handbook for a two-year monthly and a ten-year seasonal
load and capability forecast from each MAPP Participant.
The report contains actual and forecast monthly load and
capability data for the period of May 2008 through December
2011 and seasonal load and capability data for the ten-year
period Summer 2009 through Winter 2018